Determine market price of a share, Finance Basics

What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4? 

market price of a share

a

Dividend per share

   

 mce_markernbsp;                                1.20

b

Dividend payout ratio

 

0.4

c

P/E

     

14

d

Earning per share (a/b)

 

 mce_markernbsp;                                3.00

e

Market Price (d x c)

   

 mce_markernbsp;                              42.00

 

Posted Date: 7/23/2012 2:00:42 AM | Location : United States







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